Correlation Between Aim Investment and Invesco Growth
Can any of the company-specific risk be diversified away by investing in both Aim Investment and Invesco Growth at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aim Investment and Invesco Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aim Investment Funds and Invesco Growth And, you can compare the effects of market volatilities on Aim Investment and Invesco Growth and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aim Investment with a short position of Invesco Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aim Investment and Invesco Growth.
Diversification Opportunities for Aim Investment and Invesco Growth
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aim and Invesco is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Aim Investment Funds and Invesco Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Growth And and Aim Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aim Investment Funds are associated (or correlated) with Invesco Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Growth And has no effect on the direction of Aim Investment i.e., Aim Investment and Invesco Growth go up and down completely randomly.
Pair Corralation between Aim Investment and Invesco Growth
Assuming the 90 days horizon Aim Investment Funds is expected to under-perform the Invesco Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aim Investment Funds is 1.97 times less risky than Invesco Growth. The mutual fund trades about -0.2 of its potential returns per unit of risk. The Invesco Growth And is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,320 in Invesco Growth And on August 29, 2024 and sell it today you would earn a total of 171.00 from holding Invesco Growth And or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aim Investment Funds vs. Invesco Growth And
Performance |
| Timeline |
| Aim Investment Funds |
| Invesco Growth And |
Aim Investment and Invesco Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aim Investment and Invesco Growth
The main advantage of trading using opposite Aim Investment and Invesco Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aim Investment position performs unexpectedly, Invesco Growth can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Invesco Growth will offset losses from the drop in Invesco Growth's long position.| Aim Investment vs. Goldman Sachs Trust | Aim Investment vs. Mesirow Financial Small | Aim Investment vs. Pimco Capital Sec | Aim Investment vs. 1919 Financial Services |
| Invesco Growth vs. Small Cap Stock | Invesco Growth vs. Jhancock Diversified Macro | Invesco Growth vs. Guggenheim Diversified Income | Invesco Growth vs. American Century Diversified |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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